| dc.description.abstract | In the last few decades, the Indian Govt has introduced several loans to improve the financial situation of the rural people. There have been many improvements in financial aid, but still, there is a lack of financial awareness among rural people. So here comes the question: What is Financial Literacy? Financial literacy is understanding and effectively using various financial skills, including personal financial management, budgeting, and investing. It is the foundation of a relationship with money and a lifelong learning journey. Financial Inclusion is providing access to appropriate banking and financial products & services to vulnerable groups, notably weaker sections & low-income groups, at an affordable cost. When I started the project during my residential stay, the village Ronchi Bangar falls in Mathura district situated in Uttar Pradesh state, with a population of 14,692. The semi-rural population in Ronchi Bangar is more than 50%, and rural populations also surround the surrounding areas with construction laborers or cultivators. This village has a total of 15 cooperative banks in the area. Over the last few decades, most people in rural India have no access to demand-oriented banking services, which might help them improve their economic situation. It is especially true of poorer households, smallholder farmers, and women. These people go to local moneylenders to borrow large amounts of money when in need, and in return, they pay a lot of interest (more than 50-60%) to the moneylenders. Based on the research, people are unaware of any loans/schemes that Govt/banks provide to help them despite having a zero balance account. Most people said they do not know where to find this information due to lack of accessibility, and due to lack of education, they find it challenging to approach a bank to open a bank account on their own. Even the bank mitras/ sakhis who are appointed have their targets too, and they mainly focus on people who already have their accounts opened. With new schemes coming up for the people, some have limited periods, which most people miss as they are unaware. People who are aware are getting the advantage, but for uncertain people, it gets complicated. As the town is small in itself, the primary income of the residents there is mainly from the small business they run. One day our maid was asking us how to open a bank account, as she was having some issues saving money, a week after that conversation, we took her to UCO bank and helped her open her account, but a few weeks later, she told us that it's getting difficult for her to go to the bank as she wasn't educated enough to communicate with bank authorities. Hence, we went ahead and closed her account. Similarly, this kind of problem is faced by semi-literate people who have difficulty communicating with bank authorities as they feel a lack of confidence. In conclusion, due to a lack of education, some people do no feel confident enough to go and open an account in a bank. People are unaware of govt schemes; they end up investing it in chit funds/ investing it in their shops/borrowing money from money lenders in times of emergency, and paying more interest to the moneylenders. To understand the problem in much deeper context, it was essential to understand the channel of communication in a rural area. Once I understood the channels, I wanted to make more straightforward/more accessible attempts for the users to acquire banking information. | |
